SENATE BILL NO. 13 "An Act relating to eligibility requirements for medical assistance for certain children and pregnant women; and providing for an effective date." SENATOR BETTYE DAVIS expressed appreciation for the bill's hearing. She thanked those working on the legislation. She stressed that this bill will improve the health of young children in Alaska. She believed that approximately 1200 families would be eligible for the Denali Kid Care (DKC) program. Co-Chair Hawker reported that the bill changes 3 numbers in statute, which changes the poverty level limits for participation in DKC from 175% of the Federal Poverty Level (FPL) to 200%. Senator Davis replied that was correct. Representative Gara thanked the Senator for her work on the bill. JOY LYON, EXECUTIVE DIRECTOR, ASSOCIATION OF THE EDUCATION OF YOUNG CHILDREN (AYEC), testified in support of the bill. She claimed that the legislation will eventually save money with the early investment in young children's health. JORDEN NIGRO, PAST PRESIDENT, ALASKA ASSOCIATION HOMES FOR CHILDREN, voiced her support of the bill. ROD BETIT, PRESIDENT, ALASKA HOSPITAL AND NURSING HOME ASSOCIATION, testified in support of this bill. JOHN SHERWOOD, MEDICAL ASSISTANCE ADMINISTRATOR, DHSS, stated that the administration supports the legislation. Co-Chair Hawker asked to know income guidelines for 200% of FPL. Mr. Sherwood responded that annual income guidelines for a household of 4 are $55,000. Co-Chair Stoltze stated that he was raised in a family of ten children and he asked to know the income guidelines for a family of that size. Mr. Sherwood answered $112 thousand per year. 9:39:52 AM NANCY DAVIS, REGISTERED NURSE AND PRESIDENT, ALASKA NURSES ASSOCIATION JUNEAU CITIZEN, testified in support of the bill. DEBBIE THOMASON, EXECUTIVE DIRECTOR, ALASKA NURSES ASSOCIATION, testified in support of the legislation. GARA BIRDWELL, PRESIDENT, AEYC (via teleconference), testified in support of the bill. She echoed the comments of the prior testifiers. CANDACE WINKLER, CEO, THREAD, ALASKA'S CHILDCARE RESOURCE AND REFERRAL NETWORK (via teleconference), testified in support of the bill. She mentioned that she serves on the Best Beginning's early learning council. She stated that she also represents 40 organizations affiliated with United Way who also support the passage of the bill. JUNE SOBOCINSKI, UNITED WAY OF ANCHORAGE (via teleconference), testified in support of the legislation. Co-Chair Hawker closed public testimony. Co-Chair Hawker asked to know the fiscal consequences of the bill. Mr. Sherwood explained the fiscal notes. The first is a note for the public assistance workers as the caseload will increase by approximately 1300 children and over 200 pregnant women. For FY11, the total is $167,400, with approximately two thirds from federal sources and one third from the general fund. The services are split between two Medicaid components, the Acute and Primary Care and the Behavioral health components. The first year totals approximately $2.3 million, roughly a two third, one third split between federal and general fund. The behavioral health component equals $467 thousand the first year with a similar split between federal and general funds. He noted that different matching rates apply to pregnant women and children eligible for the enhanced chip match. Services provided through the tribal health facilities are eligible for the 100 percent match. Co-Chair Hawker asked how many additional children would be served with the requested funds. Mr. Sherwood responded 1300. 9:47:48 AM Vice-Chair Thomas asked about a residency requirement. Mr. Sherwood responded yes, a residency requirement exists for the Medicaid program. The requirement is sometimes described as non-durational where a person must be present in the state with the intent to stay. Representative Foster noted that the bill restores the program to the levels in effect 12 years ago. He supported the legislation. He mentioned that the program was beneficial to rural Alaska. Co-Chair Stoltze stated that the Parnell administration is in support of this bill. Representative Gara added that with the passage of the bill, Alaska will be joining 44 other states that provide a similar standard. The legislation includes a 70 percent federal match. The increase in federal funds leads to an increase in public health and medical profession employment. Representative Kelly mentioned one down side that federal funds are dropping and state will have to back fill every dollar and with the bill, Alaska is teaching a family of 4 that they cannot live on $55,000 a year to feed their kids. He believed that the bill was a step in the wrong direction. 9:52:04 AM Co-Chair Stoltze MOVED to report SB 13 out of Committee with individual recommendations and the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. SB 13 was REPORTED out of Committee with no recommendations and with previously published fiscal notes: FN5 (DHS), FN6 (DHS), FN7 (DHS). 9:52:44 AM AT EASE 9:54:13 AM RECONVENED Co-Chair Hawker made a list of bills order. 9:55:16 AM AT EASE 10:02:17 AM RECONVENED